True Corporation, following its integration with dtac, is embarking on an ambitious transformation to become a leading artificial intelligence (AI)-first technology powerhouse. Sigve Brekke, group chief executive of True Corporation, outlined the strategic vision, emphasizing that sustainable growth in the modern telecommunications landscape hinges on adapting to significant industry challenges.
Shifting Beyond Basic Connectivity
The first major hurdle for telecom companies, according to Brekke, is moving beyond the traditional model of merely providing basic connectivity. He explained that companies can choose to operate as a utility, akin to an electricity provider, which offers a viable business model but limits opportunities for value-added services. “You just sell electricity; you don’t sell anything on top of that,” he noted.
True’s strategic aim is to capture a substantial share of the broader digital economy by developing and offering layered services. Brekke envisions True as an indispensable “trusted partner in my digital life,” creating a seamless, integrated ecosystem where customers can effortlessly use services like True Mobile, True Online, True Money, and True Visions. This consumer strategy is evolving from focusing on individual users to serving entire families, offering bundled mobile and broadband solutions for households.
Organizational Transformation: From Manual to AI-Born
The second, perhaps more formidable, challenge lies in organizational transformation. True, with its workforce of 10,000 employees, is transitioning from a “manually born” company to an agile, AI-born operation. Brekke highlighted that contemporary digital companies are either digitally or AI-born, making the shift for a large, established organization to think and operate like a startup exceptionally difficult, largely due to ingrained mindsets.
To tackle this, True is actively pursuing an “AI-first” organizational structure while maintaining a strong customer-centric approach. AI is being integrated across networks, services, and digital platforms to embed intelligence, enabling more predictive and autonomous operations that enhance both performance and customer experience. A key initiative involves equipping all employees with foundational AI skills, with Brekke stating that basic AI knowledge will be a prerequisite for employment at True within a year.
External Strategy: Thailand’s AI Leadership
This AI-first philosophy extends to True’s external strategy, with a clear roadmap for Thailand to assume a leading position in the AI era. Brekke stressed the necessity of comprehensive development across several key areas: infrastructure, high-quality data, talent, and robust policy frameworks.
While Thailand possesses strong digital infrastructure, Brekke acknowledged the need for further investment. He underscored the critical role of data, advocating for both government and private sectors to prioritize making data usable by organizing and structuring it for effective application across various industries. “Both the government and private sector must prioritise making data usable — organising and structuring it to ensure it can be effectively applied across industries,” he stated.
Redefining Competition and Embracing Partnerships
The third challenge involves recognizing the evolving nature of competition. Brekke pointed out that True’s primary competitors are no longer solely other telecom providers like AIS, but rather global platform players such as Line, Shopee, TikTok, and Netflix. Competing effectively against these entities requires strategic partnerships.
Brekke anticipates that future telecom operations will increasingly rely on collaborations rather than in-house execution. “Going forward, a major change is more telecom operations will be achieved through partnerships, unlike in the past when operators did most things by themselves,” he explained. This necessitates long-term strategic alliances, involving a willingness to share success with partners. True is already implementing this strategy through partnerships with technology giants like Microsoft and Google, reselling their cloud services to business-to-business (B2B) customers on top of connectivity offerings.
The Rise of Sovereign AI
A particularly noteworthy aspect of True’s strategy is its focus on sovereign AI. The company is developing AI models built upon open large language models, specifically tailored to the Thai language and cultural nuances. “Sooner or later, I think there will be more focus on locality,” Brekke commented. “This means ensuring my data is stored in Thailand, my applications are based on Thai culture — Thais for Thais.” This approach aims to ensure that AI applications are relevant and beneficial within the local context.
Financial Pragmatism and Growth Opportunities
Despite the significant emphasis on technological advancement, Brekke remains grounded in financial realities. In the short term, the company’s AI initiatives are not projected to generate immediate revenue but are expected to help consolidate expenses related to personnel, marketing, and operational costs. The B2B sector, however, presents a substantial growth avenue for True, bolstered by its True AI hub.
True’s evolution from a traditional telecom provider to a digital solutions provider is poised to empower over three million small businesses in Thailand. These businesses will gain access to and the ability to scale new technologies, including big data analytics, AI, integrated platforms, cloud computing, and 5G connectivity. The company’s financial performance reflects this strategic shift, with its stock price increasing by 30% year-on-year. For the first quarter, True reported a record net profit of 6.58 billion baht, a fourfold increase compared to the previous year. Although total revenue saw a slight year-on-year decline to 41.2 billion baht, a nearly 30% reduction in operating expenses contributed to a 10.9% rise in earnings before interest, taxes, depreciation, and amortisation, reaching 28 billion baht for the quarter.
Shares of True concluded trading on the Stock Exchange of Thailand at 14.40 baht, a marginal decrease of 0.20 baht, amidst a trading volume valued at 2.74 billion baht.
